Durban — Testimony by a senior official from National Treasury’s Supply Chain Management, ICT, in the R320 million tender fraud trial against a former eThekwini mayor and her co-accused seems to indicate that the municipality complied with a 2016 circular concerning the Central Supplier Database (CSD) in government when it issued tender award letters to the accused companies in 2017.
The witness on Tuesday in the Durban High Court led evidence to the effect that in March 2016 National Treasury issued MFMA circular 81, informing municipalities about the introduction of CSD, a portal that enabled self-registration of all suppliers that wanted to do business with the government.
The process following the receipt of this circular was for municipalities to update their internal policies (SCM) to be aligned with the circular, he said.
“Once done they will have to follow internal processes to get the policy adopted and implemented – it is a procurement policy and therefore it affects the SCM policy,” he testified.
Zandile Gumede, 17 others, and five companies who were the main contractors in the DSW tender face over 2 000 charges, including conspiracy to commit corruption, corruption, fraud, money laundering, racketeering, contravention of the Municipal Finance Management Act, and contravention of the Municipal Systems Act; amounting to more than R300 million in relation to a DSW tender.
Among the accused are Mondli Mthembu (an executive councillor); Sipho Nzuza (former city manager); Robert Abbu, deputy head at DSW; former deputy head of supply chain management Sandile Ngcobo; and Nzuza’s wife Bagcinile whom the State alleges actively associated themselves with the common purpose of working together to manipulate the procurement process.
It’s alleged that they worked together to ensure that orders or contracts were awarded to specific suppliers – Ilanga LaMahlase Pty (LTD), Uzuzinekele Trading 31 CC, Omphile Thabanga Projects and El Shaddai Holdings CC – all listed as accused in the matter.
Accused Mzwandile Dlula is the sole director of Ilanga LaMahlase Pty (Ltd); Zithulele Mkhize is the sole member of Uzuzinekele Trading 31 CC; husband and wife Bongani and Khoboso Dlomo are the directors of Omphile Thabanga Projects; and accused Prabagaran Pariah is the sole member of El Shaddai Holdings CC.
State prosecutor advocate Hazel Siraramen said to the witness that the accused companies were given signed tender award letters for the dates 19-23 December, adding that according to the SCM policy of 2017, it was amended on 26 June 2017.
“Would eThekwini have complied with circular 81 given the above dates in the letters?” she asked the witness.
The witness also told the court that he had provided full CSD reports to the Hawks regarding certain eThekwini service providers which included dates as to when these companies registered on CSD.
Reading the dates in court the witness said that Ilanga LaMahlase Pty (Ltd) was registered on September 30, 2017, Omphile Thabanga Projects was registered on 16 March 2017, Uzuzinekele Trading 31 CC was registered on 17 January 2017, and El Shaddai Holdings CC on 10 January 2018.
“If El Shaddai Holdings CC had received a tender award letter for the dates 19-23 December it would have not complied with circular 81,” said the witness.
However, during cross-examination, the witness was directed by counsel for El Shaddai Holdings CC, advocate Donovan Moodley, to a tender form in the evidence bundle.
Moodley pointed out that under the tender portal and CSD number, the company had written: “in process”.
“Do you accept that my client in the process of getting the tender form, informed the municipality it was in the process of getting a tender portal as well as a CSD registration number,” asked Moodley to which the witness conceded.
The trial continues.
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